Y’all, we need to talk about upcoming #IPOs, and the insane rule changes that #nasdaq has just announced.
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@shredder7579 @MissConstrue my 401k allows me to allocate funds to a "capital preservation fund" (or something like that) that basically tries to stay flat. I.e. you would lose out in any gains elsewhere in the market, but not take losses (hopefully?). I doubt it's typically recommended, but it is an option. Any funds that track stuff like the SP 500 or Nasdaq 100 will have you indirectly allocating a significant proportion of your funds to all these companies heavily dependent on AI (these indexes are very top heavy, but they historically perform the best; likely because monopolies are more profitable).
I'm still reading, and trying to find out what pushback the rules are getting from the real money, and how serious the other indexes are in following the "bow to billionaires" business model.
I should go see if/what @unusual_whales has to say about the rules, the ipos, and what shorts are being placed...what is real capital doing in the face of this? (None of us have "real capital".)
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@MissConstrue @shredder7579 Why would NASDAQ-100 rules affect funds benchmarked to other indices, though?
Because the other indexes are considering adopting identical rules.
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Y’all, we need to talk about upcoming #IPOs, and the insane rule changes that #nasdaq has just announced.
Nasdaq rewrote its #index inclusion rules to accommodate #SpaceX’s mega-IPO, implementing a "Fast Entry" provision that allows the company to join the Nasdaq-100 index just 15 trading days after its initial public offering, down from the standard three-month seasoning period.
They also eliminated the minimum float requirement of 20% available public shares and instead stocks with less than 20% of shares publicly traded, Nasdaq applies a 3x multiplier to the free-float for index weighting purposes, artificially inflating low-float giants like SpaceX in passive funds.
Ok, but in English? #SpaceX, #OpenAI and #Anthropic have just figured out a scam to force every passive #IRA, #401k, and index fund to buy their stock before pricing evaluation.
They’ve figured out how to steal your #retirement.
#AI #LLM #Scam #guillotines #YouWillOwnNothing
What the SpaceX IPO means for markets
SpaceX's IPO filing has arrived. Elon Musk's rocket company is set to reshape the market when it goes public, with impacts at the index level and beyond.
Business Insider (www.businessinsider.com)
@MissConstrue looking forward to the 'pump and dump'
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@MissConstrue ok now once enough poor peoples money can be tied up in these scams and once more taxpayer money can be secured to bail out the scams... the crash everyone is rubbing their hands gleefully to come will be here... guess who will not be affected by it at all? the ones running the scams.
@htpcnz Precisely this. This is about to be a massive theft of capital. Massive. Invisibly. But gone, none the less.
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@MissConstrue Casual Finance video on the topic was quite enlightening - https://youtube.com/watch?v=-X6YzlY_8tM
@slotos Yes! That was brilliant. And I'm so glad that graphic is the thumbnail. It's such an absurd comparison.
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@MissConstrue looking forward to the 'pump and dump'
@iamnotU The churn is gonna look like feeding time at the gator tank.
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Y’all, we need to talk about upcoming #IPOs, and the insane rule changes that #nasdaq has just announced.
Nasdaq rewrote its #index inclusion rules to accommodate #SpaceX’s mega-IPO, implementing a "Fast Entry" provision that allows the company to join the Nasdaq-100 index just 15 trading days after its initial public offering, down from the standard three-month seasoning period.
They also eliminated the minimum float requirement of 20% available public shares and instead stocks with less than 20% of shares publicly traded, Nasdaq applies a 3x multiplier to the free-float for index weighting purposes, artificially inflating low-float giants like SpaceX in passive funds.
Ok, but in English? #SpaceX, #OpenAI and #Anthropic have just figured out a scam to force every passive #IRA, #401k, and index fund to buy their stock before pricing evaluation.
They’ve figured out how to steal your #retirement.
#AI #LLM #Scam #guillotines #YouWillOwnNothing
What the SpaceX IPO means for markets
SpaceX's IPO filing has arrived. Elon Musk's rocket company is set to reshape the market when it goes public, with impacts at the index level and beyond.
Business Insider (www.businessinsider.com)
@MissConstrue Time to dump nasdaq index funds, then.
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@MissConstrue @shredder7579
Ah, I remember back before, to a simpler time when I never understood why the French used those guillotines. -
@troy_frizzell Unfortunately, thanks to the Reaganites and Republicans, EVERYBODY who has a retirement plan in the United States is funding this private equity grab.
The GOP and the neoliberals masquerading as the Left gave us 401ks and IRAs. Both of which are deeply, irretrievably, connected to the the financial markets.
Every teacher, firefighter, union worker...they've all paid into this slush fund the billionaires are about to raid. The "market" isn't just rich people. They're the ones who make the most money because they have the most resources and inside information, but so many Americans, so many have their future hopes of survival riding on this bubbling, insane, tulip-crazed, stock market.
I’m 64, just about to retire and absolutely tied to these creepy weirdos.
I don’t care.
Burn it down.
I’ll take the hit. We have to end these leeches that are wrecking our culture.
I would happily give up my comfort to end that plague.
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Yes...and no. employees rarely have that kind of autonomy about their 401ks. Also, the laws around index funds are tricky, and excluding a single stock might run into regulatory issues.
It's all prospectus. If the fund "tracks an index", then it has to buy in proportional percentages everything in that index. And with companies like amazon and alphabet overweight, it means indexes hold more.
These IPOS are coming in bigger than anything has ever come in before, including the Saudi Aramco IPO...and Aramco actually produces profit.
So, short answer; any prospectus which covers broad index cannot avoid a singular stock, as I understand it.
I am not an expert.
@MissConstrue Eliminate all investment? Perhaps not. But we CAN firewall a majority of it. It would require employees broadly discussing concerns with employers in small & medium enterprise about risky investments that broadly impact ALL of them, prompting moves to ESGs. For bigger setups weaponization of The Intransigent Minority Rule by having enough core employees & management sticking to their guns & up HR's ass with irritating frequency.
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Y’all, we need to talk about upcoming #IPOs, and the insane rule changes that #nasdaq has just announced.
Nasdaq rewrote its #index inclusion rules to accommodate #SpaceX’s mega-IPO, implementing a "Fast Entry" provision that allows the company to join the Nasdaq-100 index just 15 trading days after its initial public offering, down from the standard three-month seasoning period.
They also eliminated the minimum float requirement of 20% available public shares and instead stocks with less than 20% of shares publicly traded, Nasdaq applies a 3x multiplier to the free-float for index weighting purposes, artificially inflating low-float giants like SpaceX in passive funds.
Ok, but in English? #SpaceX, #OpenAI and #Anthropic have just figured out a scam to force every passive #IRA, #401k, and index fund to buy their stock before pricing evaluation.
They’ve figured out how to steal your #retirement.
#AI #LLM #Scam #guillotines #YouWillOwnNothing
What the SpaceX IPO means for markets
SpaceX's IPO filing has arrived. Elon Musk's rocket company is set to reshape the market when it goes public, with impacts at the index level and beyond.
Business Insider (www.businessinsider.com)
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Yes...and no. employees rarely have that kind of autonomy about their 401ks. Also, the laws around index funds are tricky, and excluding a single stock might run into regulatory issues.
It's all prospectus. If the fund "tracks an index", then it has to buy in proportional percentages everything in that index. And with companies like amazon and alphabet overweight, it means indexes hold more.
These IPOS are coming in bigger than anything has ever come in before, including the Saudi Aramco IPO...and Aramco actually produces profit.
So, short answer; any prospectus which covers broad index cannot avoid a singular stock, as I understand it.
I am not an expert.
@MissConstrue You could also start a petition drive asking the hedge funds to include an investment spread that avoids or only lightly invests in 'high risk' companies forcing premature/irrational market IPOs inclusion. Or hell, just call a spade a spade. Say "X Y Z are forcing high risk investment into medium & lower risk portfolio. We want an index option that specifically discludes companies X Y Z from the index. Get enough signatures on that, hedge fund managers will sit up & take notice
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Yes...and no. employees rarely have that kind of autonomy about their 401ks. Also, the laws around index funds are tricky, and excluding a single stock might run into regulatory issues.
It's all prospectus. If the fund "tracks an index", then it has to buy in proportional percentages everything in that index. And with companies like amazon and alphabet overweight, it means indexes hold more.
These IPOS are coming in bigger than anything has ever come in before, including the Saudi Aramco IPO...and Aramco actually produces profit.
So, short answer; any prospectus which covers broad index cannot avoid a singular stock, as I understand it.
I am not an expert.
@MissConstrue One final thought on possible tactical approaches. For hundreds if not thousands of years smaller players could sometimes leverage the unlimited ego and ambition of larger players against each other. The techbros believe they are the gods of the market right now. That however, to Hedge Fund managers could be seen as encroachment on their union turf. Bringing big egos into conflict can create a lot of wiggle room for the rest of us.
...Just some thoughts. Better than doing NOTHING. -
@iamnotU The churn is gonna look like feeding time at the gator tank.
when the guy doing the feeding falls in...
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Y’all, we need to talk about upcoming #IPOs, and the insane rule changes that #nasdaq has just announced.
Nasdaq rewrote its #index inclusion rules to accommodate #SpaceX’s mega-IPO, implementing a "Fast Entry" provision that allows the company to join the Nasdaq-100 index just 15 trading days after its initial public offering, down from the standard three-month seasoning period.
They also eliminated the minimum float requirement of 20% available public shares and instead stocks with less than 20% of shares publicly traded, Nasdaq applies a 3x multiplier to the free-float for index weighting purposes, artificially inflating low-float giants like SpaceX in passive funds.
Ok, but in English? #SpaceX, #OpenAI and #Anthropic have just figured out a scam to force every passive #IRA, #401k, and index fund to buy their stock before pricing evaluation.
They’ve figured out how to steal your #retirement.
#AI #LLM #Scam #guillotines #YouWillOwnNothing
What the SpaceX IPO means for markets
SpaceX's IPO filing has arrived. Elon Musk's rocket company is set to reshape the market when it goes public, with impacts at the index level and beyond.
Business Insider (www.businessinsider.com)
@MissConstrue Hmmm … so passive index funds will be forced to include the bloatstocks into their portfolios, right? But to make room for that, they will have to sell off much of their current portfolio. Which means downward pressure on all other stocks. Maybe time to buy some put options?
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@MissConstrue Hmmm … so passive index funds will be forced to include the bloatstocks into their portfolios, right? But to make room for that, they will have to sell off much of their current portfolio. Which means downward pressure on all other stocks. Maybe time to buy some put options?
@ArtHarg I've heard a few analysts say something similar, but I don't have the courage to play the puts and shorts game. I'm more on the dividend aristocrat reinvesting for twenty years side of the board.
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@MissConstrue You could also start a petition drive asking the hedge funds to include an investment spread that avoids or only lightly invests in 'high risk' companies forcing premature/irrational market IPOs inclusion. Or hell, just call a spade a spade. Say "X Y Z are forcing high risk investment into medium & lower risk portfolio. We want an index option that specifically discludes companies X Y Z from the index. Get enough signatures on that, hedge fund managers will sit up & take notice
@Beggarmidas There are index and etfs that are not broad spectrum. They're vertical markets that focus on a specific industry or niche.
indices can get really confusing really fast, which is why most people's funds are in broad market, it spreads out the risk...theoretically. I think these rules make that less true than it was.
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@ArtHarg I've heard a few analysts say something similar, but I don't have the courage to play the puts and shorts game. I'm more on the dividend aristocrat reinvesting for twenty years side of the board.
@MissConstrue I never did shorts either. Too risky for my tolerance, since the losses are potentially unbounded. Puts and calls are safer: I stand to lose the cost of the option at most. What is actually fun is to buy call options when you sense a short squeeze coming up. Buying them “out of the money” makes them cheap and then when the short squeeze drives up the price of the asset, you can make a nice profit by selling the option.
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@Beggarmidas There are index and etfs that are not broad spectrum. They're vertical markets that focus on a specific industry or niche.
indices can get really confusing really fast, which is why most people's funds are in broad market, it spreads out the risk...theoretically. I think these rules make that less true than it was.
@MissConstrue It's all very complicated, I suspect by intent to a degree. I mean, we're all pretty well agreed that Crypto is a giant ponzi and that hype around AI has brought in such a level of investment that it's creating it's own special gravity. It's textbook overvalued. Both Crypto & AI have drawn in SO much money, including many deep pockets normally more risk adverse. A bubble popping will almost immediately pop the other as people in a panic create a run cash in their chips.
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@Beggarmidas There are index and etfs that are not broad spectrum. They're vertical markets that focus on a specific industry or niche.
indices can get really confusing really fast, which is why most people's funds are in broad market, it spreads out the risk...theoretically. I think these rules make that less true than it was.
@MissConstrue BTW: Love your nick. I had an idea for a character absolutely years ago who in the story had a public nom du guerre like Miss Take or Miss Demeanor or Miss Direction or Miss Teak. All very saucy, almost burlesque stage name adjacent for a screenplay I was working on.
